security technology market Market trends and security industry growth in 2016 each year Memoori Research publish an annual report on the state of the Global Security Market. The report points out the major technology and commercial trends that are impacting the business. In this article for Detektor International, Jim McHale, from Memoori, reveals some of the key trends that are highlighted in the report and certainly will have an impact on 2016. Jim McHale, from Memoori, reveals some of the key trends. Security has in the past always been regarded as a cost centre and as such has been towards the end of the food chain for capital investment and this can be particularly crucial when budgets are restricted. However the introduction of IP Network technology to Video Surveillance and Access Control systems aligned to IT Convergence has delivered additional value add services right across the business enterprise increasing productivity and reducing operational costs, according to Jim McHale. – Where customers can realise these benefits the buying influence goes up the management chain and the investment is more likely to be found. However to get this message delivered to the end users and to ensure that the benefits can be achieved has required some significant changes in the distribution channel. Furthermore Jim McHales states that the opportunities and the benefits for more joined up solutions has required system in- tegrators to be more “IT-ised” and distributors need to shape up their technical skills. – Shifting boxes does not win in the IP Network solutions business. This has resulted in a significant increase in value add on projects and growth in the security business, says Jim McHale. For many manufacturers, in order to deliver the best solution they have decided that it is necessary to acquire, merge or form alliances and partnerships with other suppliers. – This is not just restricted to manufacturers, system integrators have also either acquired IT network installers or formed strategic partnerships with them so that they can deliver the total solution, concludes Jim McHale, who has summarized the current trends in six different categories – related to the growth of the security technology industry – all based on the Global Security Market report from Memoori. Trend 1: Growth through specialisation The market for physical security products has become far more competitive over the last five years and it’s no longer possible for companies to maintain leadership across all three systems across the world unless they have the scale and size to deliver a constant flow of new products. Focus on one segment of the market has benefitted the leading companies in Group B (Sales between $1bn & $100m) and C (Sales below $100m), judging by their growth and profitability performance. Most are totally committed to manufacturing products and have grown organically and specialise in one or two segments of the physical security industry. Focus can also be achieved by organising business around vertical markets and many Group A companies (Sales above $1bn) do this rather well. Some have been very successful in growing their systems business by joining security with their other safety and control businesses and at the same time focus on specific vertical markets. In the developed markets of the west in order to maximize the opportunities of delivering on ROI it is vital for suppliers to have specialist knowledge and experience in vertical markets where IP Convergence is starting to take root including particularly, Retail, Transport, Health and Industrial markets. But equally important is to be able to offer plug and play solutions and interface with the other building services. Concentrating on fast growing geographical markets has worked well for Chinese companies, because their home market is the fastest growing and now the largest single country market. There is some doubt about how open the china market is, given that the public sector accounts for well over 50% of the business and for whatever reason this sector is proving almost impenetrable to western products. Two Chinese companies (Hikvision and Dahua) have in the last three years built up massive scale on the basis of their home market far outstripping all other video surveillance manufacturers in the world. They now have established a strong foothold in the USA and more recently have established themselves in Europe and are growing at a pace that most western manufacturers would be very proud of. Order the new Global Security Market report Each year Memoori Research publish an annual report on the state of the Global Security Market. In the report we assess the major techno / commercial trends that are impacting the business. In this article for Detektor International we discuss some of the key trends highlighted in our report. The report can be purchased directly from AR Media International for $999 USD for a Single User License or $1,499 USD for an Enterprise License. Visit: http://www.armedia.se/en/products_other_physicalSecurity_info.asp Security News Every Day – www. securityworldhotel.com dete kto r in te r n at i on al • 1 1